If there is one thing I did not learn growing up was how to mange money. I know my mom did the best she could with what she was taught however not knowing how to mange money was brought into my marriage and was not taught to my children from the start.
The closer I get to the Lord the easier it is not to embrace the lies that its too late to learn or teach our children.
The Bible tells us “Train up a child in the way he should go, and when he is old he will not depart from it” (Proverbs 22:6)
After running to the Lord and asking Him to show me how to manage money so that I could teach my children, He delivered. The first thing that we did is got rid of our credit card, only keeping our debit card, and started paying with cash. If we are going to teach our children how to handle money Gods way, we had to handle it well too. To be obedient to this we do the cash system used by Dave Ramsey.
We started them with their birthday money they would receive, 10% to God, 10% to savings, and they could spend the rest. I have found over the years that showing them how to give God their best first, they don’t hold so tight to their money.
There was some resistance at first because we didn’t start training from the beginning however it did not take long for them to jump on board. For this to work the best, we have our children separate their money as soon as they get it. The faster they get rid of the money the easier it is for them not to want to hold on to it.
We also use verbal instruction to train our children the way of the Lord with money based on Deut 6:7. Teaching them that its not their money, but that it is God money, helps them to understand that He has entrusted them with His money and we are to be good stewards.
“These words, which I am commanding you today, shall be on your heart. You shall teach them diligently to your sons and shall talk of them when you sit in your house and when you walk by the way and when you lie down and when you rise up.” Deuteronomy 6:7
We are always finding ways to teach our children about money. The biggest way we teach is this is when they want to buy something. Once they have separated all their money they then have to figure out how much it will take to buy the item they want. Learning that we do not touch Gods money or savings. It has been a challenge however it has been great seeing them get it and want to give God His money without having to say anything to them. Its on their mind first instead of their item.
What are some ways that you teach your children how to handle money God’s way? I would love to hear your thoughts in the comment below!
I think this is a great idea (and VERY important) but we do it just slightly different. We divide 10% for God, 10% in savings, then 50% of what’s left into long-term savings and the rest is their “fun money.” The 50% into long-term goes into their college/future savings account that is not easily accessible right now and we consider that the equivalent of paying your household bills. The 10% in savings going into a simple savings account at the bank that they can access easily if necessary.
This works well while our kids are young and don’t need much money. We actually put more than 10% into their savings account because we really only let them keep a minimal amount as “fun money” and they don’t go out and spend very often anyway. It will probably change a little as they get older and want to/need to spend more.
LOVE Dave Ramsey!